Aphria (APHA) Reports Q4 Revenues of Cdn$152.2M

Aphria (NASDAQ: APHA) reported Q4 revenue for the quarter came in at Cdn$152.2 million, versus Cdn$144.42 million reported last year.

Key Operating Highlights - Fourth Quarter Fiscal 2020

• Gross revenue for adult-use cannabis of $56.7 million in the fourth quarter, an increase of 27% from prior quarter and the fifth consecutive quarter of growth.
• Net cannabis revenue of $53.1 million in the fourth quarter, an increase of 81% from prior year quarter.
• Net revenue of $152.2 million in the fourth quarter, an increase of 18% from prior year quarter and increase of 5% from prior quarter.
• Cash cost to produce dried cannabis per gram of $0.88 in the fourth quarter, a decrease of 5% from prior quarter.
• Adjusted EBITDA of $8.6 million in the fourth quarter, an increase of 49% from the prior quarter.
• Adjusted EBITDA from cannabis operations of $9.3 million in the fourth quarter, an increase of 55% from the prior quarter.
• Ended fourth quarter with a strong balance sheet and liquidity, including $497.2 million of cash and cash equivalents to fund planned Canadian and International growth.
• Received its European Union Good Manufacturing Practices ("EU GMP") certification from the Malta Medicines Authority ("MMA") at the Company's subsidiary, ASG Pharma Ltd., providing the Company with the ability to ship finished dried flower and finished oil for medicinal and research use in permitted jurisdictions throughout the European Union and strengthening the Company's leadership in the region.
• Liquidated $39 million Promissory Note from GA Opportunities Corp. for proceeds of approximately $26 million.
• Reduced debt and eliminated $6.7 million in annual cash interest costs by repurchasing an aggregate of approximately $127.5 million convertible senior notes at a 25% discount to their face value, using shares issued at a 31% premium to Aphria's closing market price as of May 7, 2020.
• Recorded a non-cash impairment of $64.0 million in the fourth quarter, which is largely attributable to measures taken with respect to certain of the Company's international businesses in response to the COVID-19 pandemic.
• Recognized for Executive Gender Diversity by Globe and Mail's inaugural Report on Business Women Lead Here list, an annual benchmark of executive gender diversity in corporate Canada.

Key Operating Highlights - Fiscal Year 2020

• Gross revenue for adult-use cannabis of $150.4 million in 2020, an increase of 307% from 2019.
• Gross cannabis revenue of $204.7 million in 2020, an increase of 129% from $89.4 million in 2019.
• Net revenue of $543.3 million in 2020, an increase of 129% from $237.1 million in 2019.
• Cash cost to produce dried cannabis per gram of $1.04 in 2020, a decrease of 24.1% from 2019.
• Positive Adjusted EBITDA of $17.2 million in 2020, compared to a loss of $27.7 million in 2019.
• Adjusted EBITDA from cannabis operations of $20.1 million in 2020, compared to a loss of $17.5 million in 2019.

Subsequent Events

• Aphria transferred its stock exchange listing from the New York Stock Exchange to The Nasdaq Global Select Market ("Nasdaq") on June 8, 2020. This transition did not impact the Company's primary listing on the Toronto Stock Exchange (TSX: APHA).
• Aphria, Emblem Cannabis Corporation ("Emblem"), and Aleafia Health Inc. (TSX: AH, OTC: ALEAF) amicably settled their outstanding dispute related to the termination of the parties' wholesale cannabis supply agreement on June 25, 2020, ending any and all potential claims and litigation against and between Aphria, Emblem, and Aleafia Health relating to the supply agreement.
• Filed Prospectus supplement for $100 million (USD) At-the-Market program.

"At Aphria, we are setting ourselves apart from the rest of the cannabis industry," said Irwin D. Simon, Chairman and Chief Executive Officer. "We have generated some of the strongest sales growth, we have one of the strongest balance sheets and cash positions, compelling consumer brands and a well-diversified global business. We are grateful for the dedication of our employees for whom our commitment to protect their safety is unwavering and remains a founding principle of our company. Our strong finish to fiscal year 2020 demonstrates that this was a transformative year for Aphria, as our net revenue increased 129% from fiscal year 2019. We continue to focus on capturing strong market share in Canada by executing upon our strategic plan and positioning Aphria as a leader in category innovation. With exciting new product categories and line extensions launching in the very near future, we believe our award-winning adult-use portfolio remains unmatched in the industry. By building on this foundation, we remain focused on the highest return opportunities for growth and long-term value creation."

For earnings history and earnings-related data on Aphria (APHA) click here.

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